Ferro Enterprises uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. During the month of September, the company applied $52,000 in fixed manufacturing overhead cost to units of product. At the end of the month, manufacturing overhead was overapplied by $3,000. If there was no volume variance in September, then the budgeted fixed manufacturing overhead cost for the month was:
A. $55,000
B. $52,000
C. $58,000
D. $49,000
Answer: B
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Answer the following statement true (T) or false (F)
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a. True b. False
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